Mining Capital Coin co-founder and CEO Luiz Carlos Capuci Jr., has been indicted on wire and securities fraud fees.
Capuci, aka Jr. Caputti, Junior Caputti and Junior Capuci, co-founded Mining Capital Coin with Emerson Souza Pires again in 2017.
The DOJ filed Caputti’s indictment beneath seal on April twenty eighth. Throughout three counts of fraud, the indictment alleges Mining Capital Coin was a $62 million Ponzi scheme.
Up till just lately Capuci (proper), who holds twin Brazilian and US citizenship, was a resident of Florida.
After being served a subpoena as a part of a parallel SEC investigation, Caputti fled to Brazil.
On Could fifth the DOJ moved to unseal Capuci’s indictment, noting;
Capuci is believed to be in Brazil.
On or about Could 2, 2022, Capuci was scheduled to journey to america on a flight from Brazil to Miami, Florida.
Capuci didn’t board the airplane.
On or about Could 5, 2022, the SEC plans to unseal a civil motion towards Capuci.
At the moment Capuci might be placed on discover relating to the indictment on this case.
Based mostly on earlier statements of Capuci, the Authorities believes that Capuci, a twin Brazil-United States citizen, will keep overseas to stay out of attain of United States authorities.
Capuci is conscious that Brazil doesn’t extradite its residents.
The Authorities submits that unsealing the indictment is within the curiosity of justice and can present discover to – and assist determine and stop future – victims relating to the allegations charged within the indictment.
The courtroom permitted the DOJ’s movement to unseal on Could fifth.
As per Capuci’s indictment, Mining Capital Coin was a $62 million greenback Ponzi scheme.
In or round late 2017, LUIZ CARLOS CAPUCI JR. and CC-I created MCC.
From the start, CAPUCI and CC-I aggressively marketed MCC to potential traders as a profitable funding alternative.
“CC-1” refers to Capuci’s associate in crime, Emerson Pires.
CAPUCI and CC-I falsely and fraudulently touted MCC’S purported funding applications involving cryptocurrency mining, cryptocurrency buying and selling, and different funding exercise, together with overseas alternate buying and selling.
Capuci, CC-1 and MCC falsely and fraudulently obtained roughly $62 million from retail traders all over the world.
Mining and buying and selling are the “go-to” ruses of MLM crypto Ponzi schemes.
Capuci represented that MCC had “technological mining amenities with the perfect gear positioned in america,” when Capuci knew that MCC was not working such mining amenities, not to mention utilizing the perfect mining gear in america.
BehindMLM maintains any MLM firm claiming to interact in buying and selling and/or mining that isn’t registered with monetary regulators is a Ponzi scheme.
We routinely remind readers that social media is not an alternative choice to the authorized requirement of submitting monetary studies with regulators.
Mining Capital Coin is a traditional instance of why;
To influence traders to speculate, Luiz Carlos Capuci Jr. and CC-1 posted movies to social media … relating to MCC’s purported community of mining machines.
On or about December 26, 2018, MCC revealed a video to the web by way of a social media platform relating to MCC’s mining operations.
In the course of the video, Capuci filmed a room containing what seemed to be quite a few mining machines in operation.
Capuci then said, “you guys just like the noise? It’s mining, it’s mining, getting cash for you guys.”
Later he said, “I didn’t spend cash to go to Africa, Nigeria, or no matter, to do a Ponzi scheme,” and falsely claimed to have seven different workplaces the place MCC carried out mining as properly.
On or about December 26, 2018, MCC revealed (one other) video.
In the course of the video, CC-1 defined that MCC’s mining machines “[were] mining proper now, alright, on a regular basis for you… MCC working with the investments, working with the cash, working along with your cash, making your cash be just right for you.”
Opposite to Capuci’s representations to traders, MCC was not working a big community of cryptocurrency mining machines to generate returns for traders.
As an alternative, Capuci was working a bootleg funding scheme by which he was falsely and fraudulently diverting traders’ fund to cryptocurrency wallets and monetary accounts beneath his management and never investing the funds in MCC’s operations as he had falsely represented to his traders.
In truth, to attract consideration away from the actual fact he was committing securities fraud as a result of MCC was a Ponzi scheme, Capuci made all kinds of claims:
- “that MCC had partnered with the World Financial institution to safe an funding in eco-friendly energy turbines and used wind generators to energy its mining facility” (legitimacy by way of affiliation)
- “that MCC had submitted purposes to have Capital Coin … listed on no less than one distinguished cryptocurrency alternate” (legitimacy by way of affiliation)
- “that MCC was licensed by the North Carolina Commissioner of Banks as a “Digital Foreign money Seller” (legitimacy by way of affiliation and in addition meaningless with respect to securities fraud)
- “that MCC had a partnership with the Clinton Basis … in order that MCC may assist deliver colleges to kids in Africa and share the successes that MCC had loved” (legitimacy by way of affiliation and utilizing charity to justify fraud)
- “falsely and fraudulently representing to traders that he was a former agent with the FBI” (legitimacy by way of affiliation)
- “falsely advised that MCC was the “greatest cryptocurrency mining enterprise on the earth””
After all none of those representations have been true. They have been fabrications that made up Mining Capital Coin’s advertising and marketing machine.
Mining Metropolis Capital’s Ponzi scheme revolved across the sale of mining packages and buying and selling bots.
Mining Packages
MCC provided 52 week returns on Mining Bundle investments, purportedly derived from cryptocurrency mining.
To share in these purported mining earnings, Capuci and CC-1 falsely and fraudulently provided and marketed MCC’s “Mining Packages” as a profitable funding alternative.
Upon buying such a package deal, Capuci promised traders a weekly return primarily based on the quantity of the package deal, to be distributed routinely and bi-monthly to the traders’ cryptocurrency wallets.
Capuci promoted the Mining Packages as an funding of cash into a standard enterprise with different traders, with the affordable expectation of earnings from the efforts of MCC.
The Mining Packages due to this fact certified as “securities” beneath the foundations and laws governing the provide and sale of securities within the US and required registration with the SEC.
Capuci by no means registered MCC’s funding program … as an providing and sale of securities with the SEC; nor did Capuci have a sound exemption from this registration requirement.
Buying and selling Bot Packages
BehindMLM reviewed Mining Capital Coin in mid 2018. On the time Mining Capital Coin represented exterior income was generated by way of buying and selling and different means, however solely Mining Packages have been provided.
That modified in 2019.
Starting in or round 2019, Capuci and CC-1 additionally aggressively touted and falsely and fraudulently marketed MCC’s purported “Buying and selling Bots” as a further funding mechanism for traders.
Capuci and CC-1 misled the general public by stating that MCC provided, owned, and managed Buying and selling Bots that might generate vital earnings for potential traders within the cryptocurrency buying and selling market.
Capuci said that buying and selling bots then out there available on the market weren’t producing “constructive outcomes”.
In distinction, Capuci claimed MCC joined with “high software program builders in Asia, Russia, and the united statesA. to create an improved model of Buying and selling Bot[s] that [were] examined with new expertise by no means seen earlier than.”
Capuci additional represented that MCC”s Buying and selling Bots … would generate every day returns to traders, which ranged from between 1% and three.5% a day.
As an alternative, Capuci was falsely and fraudulently diverting traders’ funds to cryptocurrency wallets and monetary accounts beneath his management for his personal private use and the usage of his co-conspirators.
The Mining Capital Coin exit-scam
Shortly after its buying and selling bot funding plans have been launched, Mining Capital Coin initiated its shitcoin exit-scam.
In or round 2019, MCC ceased paying traders’ returns in bitcoin, which was the unique mannequin.
As an alternative MCC started distributing returns to traders with Capital Coin, MCC’s personal cryptocurrency.
Then got here the KYC exit-scam…
In or round 2020, Capuci additionally advised traders that they have been required to pay a $100 “Know Your Buyer” charge for every MCC account in an effort to take part in a “swap” of Capital Coin for bitcoin.
This happened by means of “Bitchain Trade”, an inner MCC alternate that Capuci managed however claimed he didn’t.
Capuci fraudulently represented that Bitchain Exchanges was not affiliated with MCC when, the truth is, Capuci exercised management over Bitchain Exchanges, together with by means of Capuci’s registration of the Bitchain Trade web site.
After Capital Coin was launched, traders have been left bagholding a nugatory token. Mining Capital Coin collapsed the second it stopped paying out in bitcoin.
The Ponzi scheme was later deserted.
Prison Prices
Because of working Mining Capital Coin, an alleged $62 million Ponzi scheme, Capuci has been indicted on three counts of fraud:
- conspiracy to commit wire fraud;
- conspiracy to commit securities fraud; and
- conspiracy to commit worldwide cash laundering.
The DOJ is in search of forfeiture of “sure property” Capuci has an curiosity in.
If convicted on all three counts, Capuci is going through 45 years in jail.
Closing Ideas
I’ve two closing ideas for you; the primary is Capuci working again to Brazil means we’ve obtained one other Carlos Wanzeler on our palms.
Whereas it took some time for Brazilian legislation to catch up, that plan didn’t pan out for Wanzeler.
Wanzeler was stripped of his Brazilian citizenship in 2018 and arrested on the behest of the US authorities in 2020.
Extradition proceedings towards Wanzeler are believed to be ongoing.
I’m pondering the DOJ has thought this by means of in the event that they’ve filed to unseal the indictment. I can’t say for positive what the plan is at this stage (following on from Wanzeler that is very a lot uncharted territory).
The second thought is Capuci’s associate in crime; Emerson Pires.
BehindMLM revealed its Mining Capital Coin evaluate in Could 2018, no less than seven months earlier than it collapsed.
Having researched and analysed Mining Capital Coin’s enterprise mannequin, right here’s what I concluded 4 years in the past:
Initially if Mining Capital Coin is certainly primarily based out of Massachusetts within the US, they should register their passive funding alternative with the SEC.
A search of the SEC’s Edgar database nevertheless reveals Mining Capital Coin isn’t registered.
Which means at a minimal Mining Capital Coin are engaged in securities fraud.
A part of that is the excessive likelihood Mining Capital Coin are merely shuffling round newly invested funds to repay current traders.
In August 2018 Emerson Pires confirmed up within the feedback part to defend his Ponzi scheme.
You’ll find these feedback left on each Ponzi scheme BehindMLM critiques that good points traction.
Having bilked customers out of an alleged $62 million with Capuci, Pires would resurface with EmpiresX in June 2021.
EmpiresX noticed Pires crew up with new companions however very a lot run the identical MLM crypto Ponzi scheme.
Mentioned Ponzi scheme collapsed on or round October 2021. A knowledge leak suggests customers once more misplaced over $60 million.
The SEC have revealed, like Capuci, Pires has just lately fled Florida for Brazil. He’s most likely not coming again willingly both.
Whether or not Pires has been or has an indictment pending is unclear. Ditto whether or not he’ll face extra fees over EmpiresX.
Each the DOJ and SEC state of their respective press-releases that the case remains to be beneath investigation.
Replace twentieth Could 2022 – As of Could sixteenth, Luiz Capuci’s prison case docket displays he’s a wished fugitive.